The cross-track baseline requirement in a satellite formation flying mission requires an orbital plane-change maneuver during the acquisition phase. While the optimization of orbital plane-change maneuver has been well studied, the constraints of the propulsion system, such as the power limitation, battery charging cycle, and finite thrust durations, are often neglected. In addition, the self-pressurized chemical propulsion system used in this satellite mission experiences a performance degradation effect over prolonged use in terms of specific impulse and thrust force. To overcome these constraints on the orbital plane-change maneuver process, this article proposes an optimized algorithm by minimizing Edelbaum’s equation using a selective constrained ensemble Kalman filter that includes propulsion’s performance variation and firing duration constraints. Monte Carlo simulations have been conducted to benchmark the proposed method against the theoretical impulsive thrusts in terms of <inline-formula xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink"> <tex-math notation="LaTeX">$\Delta V$ </tex-math></inline-formula> , and the commonly adopted natural precession-based plane-change method in terms of the total time taken. Results from the simulation have shown that the required <inline-formula xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink"> <tex-math notation="LaTeX">$\Delta V$ </tex-math></inline-formula> of this proposed method is similar to the theoretical impulsive burn method. In addition, it requires a 75% shorter time than the natural precession method in achieving the desired plane change and is 36% more fuel efficient than the direct firing method. Furthermore, this study has verified that this algorithm can be directly integrated with the existing formation control algorithm.